National Penn Bancshares Reports Increased First Quarter Earnings

Apr 17, 2001, 01:00 ET from National Penn Bancshares, Inc.

    BOYERTOWN, Pa., April 17 /PRNewswire/ --
 National Penn Bancshares, Inc., (Nasdaq: NPBC) the parent company of National
 Penn Bank and Panasia Bank, N.A., reported an 8.7% increase in net income of
 $7,572,000 for the first three months of 2001 when compared to $6,964,000 for
 the three months ended March 31, 2000.  Net income per diluted share for the
 first three months of 2001 was $0.39, an 8.3% increase over the $0.36 reported
 for the first three months of 2000.  These earnings represent a return on
 average realized equity of 16.9% and a return on average assets of 1.17%.
 These compare to a return on average equity of 16.6% and a return on average
 assets of 1.17% for the first quarter of 2000.
     The company had total assets at March 31, 2001 of $2.63 billion and total
 deposits of $1.92 billion.  The company's loan loss reserve as of March 31,
 2001 was $38.9 million which represents 2.14% of total loans outstanding of
 $1.82 billion.
     During the first quarter of 2001, National Penn Bancshares, Inc. completed
 the acquisition of Community Independent Bank, Inc., parent company of
 Bernville Bank, N.A., in a transaction accounted for under the pooling of
 interests method of accounting.  As a result, all financial information
 presented for current and prior periods has been restated to include the
 results of Community Independent Bank, Inc. and its subsidiary.
     On March 28, 2001, the Board of Directors declared a quarterly cash
 dividend of  $0.21 per share, payable May 17, 2001 to shareholders of record
 on April 30, 2001.  National Penn Bancshares, Inc. and its predecessor bank
 have paid cash dividends without interruption for over 125 years.
 
     National Penn Bancshares, Inc. currently operates 60 banking offices in
 southeastern Pennsylvania through National Penn Bank and its divisions,
 Chestnut Hill National Bank, 1st Main Line Bank, National Asian Bank, and
 Elverson National Bank.  Panasia Bank operates 3 banking offices in the
 northern New Jersey marketplace.  Trust and investment management services are
 provided through Investors Trust Company, brokerage services are provided
 through Penn Securities, Inc., and mortgage banking activities are provided
 through Penn 1st Financial Services, Inc.
 
 
                         National Penn Bancshares, Inc.
 
                 (Dollars in thousands, except per share data)
 
     Three Months Ended March 31,                    2001            2000
 
     STATEMENTS OF CONDITION
     Total assets                                  $2,632,768     $2,384,512
     Total deposits                                 1,919,642      1,709,136
     Total loans                                    1,819,632      1,667,725
     Total shareholders' equity                       193,452        154,938
     Total realized shareholders' equity*             184,079        169,044
     Book value per share                                9.98           8.06
     Realized book value per share*                      9.50           8.80
 
     EARNINGS
     Total interest income                            $49,012        $45,827
     Total interest expense                            26,807         23,512
     Net Interest Income                              $22,205        $22,315
     Provision for loan losses                          1,500          1,530
     Net interest income after provision
      for loan losses                                 $20,705        $20,785
     Other income                                       7,573          6,282
     Other expenses                                    18,704         18,430
     Income before income taxes                        $9,574         $8,637
     Income taxes                                       2,002          1,673
     Net income                                        $7,572         $6,964
     Return on average assets                           1.17%          1.17%
     Return on average shareholders' equity             16.5%          17.8%
     Return on average realized shareholders'
      equity*                                           16.9%          16.6%
     Average shares -- basic                       19,374,224     19,232,444
     Average shares -- diluted                     19,624,151     19,462,539
 
     PER SHARE
     Basic earnings                                     $0.39          $0.36
     Diluted earnings                                    0.39           0.36
     Dividends paid in cash                              0.21           0.19
 
     *Excluding net unrealized gain (loss) on securities available for sale
 
                                                     AS OF           AS OF
     BALANCE SHEET - ASSETS ($000s)                 3/31/01        12/31/00
         Cash & Cash Equivalents                   $ 93,888       $ 104,631
         Trading Account Securities                       -               -
         Securities Available for Sale              612,636         606,778
         Held to Maturity Securities                      -               -
         Other Securities                                 -               -
         Total Securities                           612,636         606,778
         Total Cash and Securities                  706,524         711,409
         Loans & Leases Held for Investment*      1,819,632       1,787,314
         Loans & Leases Held for Sale*                    -           9,671
         Total Loans and Leases*                  1,819,632       1,796,985
         *Indicates data net of discount,
           gross of reserve
         Loan Loss Reserve                          (38,985)        (37,098)
         Goodwill                                    16,702          17,028
         Other Intangibles                                -               -
         Total Intangible Assets                     16,702          17,028
         Mortgage Servicing Rights                        -               -
         Purchased Credit Card Relationships              -               -
         Real Estate Owned & Held for Investment        926             988
         Other Assets                               127,969         126,135
         Total Assets                           $ 2,632,768     $ 2,615,447
 
     BALANCE SHEET - LIABILITIES ($000S)
         Deposits                               $ 1,919,642     $ 1,909,591
         Borrowings                                 449,751         453,522
         Trust Preferred Securities                  40,250          40,250
         Other Liabilities                           29,737          28,868
         Total Liabilities                      $ 2,439,380     $ 2,432,231
 
     BALANCE SHEET - EQUITY ($000s)
         Redeemable Preferred Stock                     $ -             $ -
         Preferred Equity                               $ -             $ -
         Common Equity                            $ 193,452       $ 183,216
 
     MEMO ITEMS
         Accumulated other comprehensive income     $ 9,373         $ 2,753
         Publicly Reported Book Value Per Share (A)  $ 9.98          $ 9.47
         Book value per share excluding
          accumulated other comprehensive inc. (A)   $ 9.50          $ 9.33
         EOP Common Shares Outstanding
          (excluding Treasury shares)(A)         19,380,241      19,349,942
         Treasury Shares Held By Company              9,538          39,837
         Did you announce a repurchase plan
          during this period?                           Yes              NO
         Number of Shares to be Repurchased
          in Plan (A)                                55,000               -
         Number of Shares Repurchased During
          Period (A)                                 16,319               -
         Average Price of Repurchased Shares (A)      23.28               -
 
     (A) restated for 5% stock dividend paid December 20, 2000.
 
 
                                                    FOR QUARTER      YEAR
                                                       ENDED         ENDED
     INCOME STATEMENT ($000s)                         3/31/01       12/31/00
 
         Interest Income                             $ 49,012      $ 192,303
         Interest Expense                              26,807        103,976
         Net Interest Income                           22,205         88,327
         FTE adjustment                                 1,860          7,234
         Net Interest Income (FTE)                     24,065         95,561
         Loan Loss Provision                            1,500          7,325
         Investment Securities Trans.                      31            286
         Nonrecurring Income                                -              -
         Nonrecurring Expense                               -              -
         Trading Account Income                             -              -
         Foreign Exchange Income                            -              -
         Trust Revenue                                  1,268          4,855
         Service Charges on Deposits                    2,040          7,175
         Mortgage Banking Income                          776          2,203
         Fee Income from Investment Product Sales         490          2,007
         Other Noninterest Income                       2,968         11,132
         Total Noninterest Income(excludes
          securities gains/losses)                      7,542         27,372
         Employee Comp. & Benefit Expense              10,546         41,589
         Occupancy & Equipment Expense                  3,108         12,190
         Foreclosed Property Expense                        -              -
         Amortization of Intangibles                      325          1,000
          (Excludes Servicing and Credit Card
          Intangibles)
         Other Noninterest Expense                      4,725         20,504
         Total Noninterest Exp.                        18,704         75,283
         Minority Interest Expense                          -              -
         Net Income Before Taxes                        9,574         33,377
         Tax Provision                                  2,002          5,690
         Net Inc. Before Extraordinary Items            7,572         27,687
         Extraordinary & After-Tax Items                    -              -
         Net Income                                   $ 7,572       $ 27,687
 
         EARNINGS PER SHARE:
 
         Basic before extraordinary (A)                $ 0.39         $ 1.44
         Diluted before extraordinary (A)              $ 0.39         $ 1.43
         Basic after extraordinary (A)                 $ 0.39         $ 1.44
         Diluted after extraordinary (A)               $ 0.39         $ 1.43
         Dividends per Common Share (A)                $ 0.21         $ 0.76
         Average Shares Basic (A)                  19,374,224     19,240,915
         Average Shares Diluted (A)                19,624,151     19,448,811
         Dividends on Preferred Stock ($000s)             $ -            $ -
 
      (A) restated for 5% stock dividend paid December 20, 2000.
 
 
     AVERAGE BALANCE SHEET ($OOOs)
                                                     As of       For QTR Ended
                                                   03/31/01         3/31/01
                                                   (YTD AVG)       QTRLY AVG
 
         Total Loans (net of unearned)              1,789,337      1,789,337
         Loan Loss Reserve                           (38,743)       (38,743)
         Investment Securities (incl.
          trading assets)                             614,861        614,861
         Other Earning Assets                          18,527         18,527
 
         Total Earning Assets (net of loan
          loss reserve)                             2,383,982      2,383,982
         Total Assets                               2,582,327      2,582,327
 
         Savings                                      106,386        106,386
         NOW Accounts                                 197,209        197,209
         Money Market Accounts                        367,269        367,269
         Certificates                                 945,797        945,797
 
         Total Int. Bearing Deposits                1,616,661      1,616,661
 
         Non-Interest Bearing Deposits                286,565        286,565
         Total Deposits                             1,903,226      1,903,226
 
         Short-Term Borrowings                        278,552        278,552
         Long-Term Borrowings                         186,681        186,681
         Total Int. Bearing Liabilities
          (incl. non-int bearing deposits)          2,368,459      2,368,459
         Total Int. Bearing Liabilities             2,081,894      2,081,894
         Total Shareholder's Equity                   183,878        183,878
 
 
                                  FOR QUARTER       FOR YEAR         YEAR
                                     ENDED           TO DATE         ENDED
     CHARGEOFFS ($000s)              3/31/01           2001        12/31/00
 
         Loan Chargeoffs             $ 2,053         $ 2,053       $ 7,109
         Recoveries on Loans           $ 504           $ 504       $ 2,082
         Net Loan Chargeoffs         $ 1,549         $ 1,549       $ 5,027
 
                                                      AS OF           AS OF
     ASSET QUALITY AND OTHER DATA ($000s)            3/31/01        12/31/00
 
         Nonaccrual Loans                            $ 21,708       $ 12,984
         Renegotiated Loans                                 -              -
         Other Real Estate Owned                          926          1,485
         Total Nonperforming Assets                    22,634         14,469
         Loans 90+ Days Past Due & Still Accruing       1,359          4,559
         NPAs plus Loans over 90                     $ 23,993       $ 19,028
 
                                                        AS OF          AS OF
     REGULATORY CAPITAL DATA ($000s)                  3/31/01       12/31/00
 
         Tier 1 Capital                             $ 207,562      $ 203,197
         Tier 1 Ratio (%)                              10.55%         10.49%
         Total Capital (Tier 1 + Tier 2)            $ 233,378      $ 227,589
         Total Capital Ratio (%)                       11.86%         11.75%
         Total Risk-Adjusted Assets               $ 1,968,042    $ 1,936,314
         Tier 1 Leverage Ratio                          8.11%          7.96%
 
                                                                 AS OF
     SUPPLEMENTAL DATA ($000s)                                  3/31/01
 
         1-4 Family Mortgage Loans
          Serviced For Others                                 $ 233,540
         Propriety Mutual Fund Balances                             $ -
         (Net Asset Value in $000s)
         Held to Maturity Securities (Fair Value)                   $ -
         Return on Avg. Assets                                    1.17%
         Return on Avg. Equity                                    16.5%
         Preferred Stock Dividends (total $ in period)              $ -
         Common Stock Dividends (total $ in period)             $ 4,072
         One Year Cumulative Repricing Gap                          $ -
         EOP Employees (Full Time Equivalent)                       812
 
 
                                                                  AS OF
     PERIOD END BALANCES:                                        3/31/01
 
     Loan Breakdown: (regulatory)
         Commercial/Industrial                                $ 309,496
         Commercial Real Estate                                 587,284
         Residential Mortgage (including multi-family)          518,253
         Real Estate Construction (and Land Development)        155,614
         Home Equity (revolving and 2nd lien)                   148,412
         Consumer (Loans to Individuals)                         84,241
         Bank Card                                                    -
         Foreign                                                      -
                                             (Other)             16,332
         Total Loans (net of unearned)                        1,819,632
         Investment Securities (incl. trading assets)           612,636
         Other Earning Asset                                     30,180
         Total Earning Assets (net of loan loss reserve)      2,423,462
         Total Assets                                         2,632,768
     Deposit Breakdown:
         Savings                                                108,956
         NOW Accounts                                           212,570
         Money Market Accounts                                  380,164
         Certificates                                           689,701
         CDs>$100m                                              265,275
         Foreign CDs                                                  -
                                            (as needed)               -
     Total Int. Bearing Deposits                              1,656,666
         Non-Interest Bearing Deposits                          262,976
     Total Deposits                                           1,919,642
         Short-Term Borrowings                                  303,324
         Long-Term Debt                                         186,677
     Total Int. Bearing Liabilities (incl. non-int
      bearing deposits)                                       2,409,643
     Total Int. Bearing Liabilities                           2,146,667
     Total Stockholders Equity                                $ 193,388
 
 
                                                                 AS OF
     PERIOD END BALANCES:                                       3/31/01
 
     Loan Breakdown: (internal)
         Business Purpose Loans                               $ 589,068
         Residential Mortgage                                   202,550
         Commercial Real Estate, Construction and Land Dev      692,480
         Consumer (loans to Individual)                         335,534
         Total Loans (net of unearned)                      $ 1,819,632
 
 
     BALANCE AND YIELD/COST ANALYSIS:                          AS OF
     (Qtr Avg)                                                3/31/01
                                                  Avg Balance          Yield
 
     Total Loans (net of unearned)                $ 1,789,337           9.0%
     Investment Securities (incl. trading assets)     614,861           7.2%
     Other Earning Assets                              18,527           5.7%
 
     Total Earning Assets                           2,422,725           8.5%
     Total Earning Assets (net of loan
      loss reserve)                                 2,383,982           8.7%
     Total Assets                                   2,582,327           8.0%
 
     Savings                                          106,386           2.1%
     NOWAccounts                                      197,209           1.1%
     Money Market Accounts                            367,269           4.7%
     Certificates                                     945,797           6.4%
 
     Total Int. Bearing Deposits                    1,616,661           5.1%
 
     Non-Interest Bearing Deposits                    286,565
     Total Deposits                                 1,903,226           4.3%
 
     Short-Term Borrowings                            278,552           5.1%
     Long-Term Borrowings                             186,681           6.8%
     Total Int. Bearing Liabilities
     (incl. non-int bearing deposits)               2,368,459           4.6%
     Total Int. Bearing Liabilities                 2,081,894           5.2%
     Total Shareholder's Equity                     $ 183,878
 
     Net Yield on Earning Assets (net of loan
      loss reserve): (Margin)                            4.1%
     Net Yield on Earning Assets: (Margin)               4.0%
 
 
    STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA)
 
            State     Number of Full Service Banking Offices (Domestic and in
                             the U.S. Territories)
 
             1.  PA                                                        6
     Total Number of Banking Offices                                      61
     Total Number of Insured Subsidiaries (Bank & Thrift
      Subsidiaries)                                                        1
     Total Number of ATMs                                                 74
 
             2.  NJ                                                        3
     Total Number of Banking Offices                                       3
     Total Number of Insured Subsidiaries (Bank & Thrift
      Subsidiaries)                                                        1
     Total Number of ATMs                                                  4
 
   Have you restated any prior period's financial statements for a pooling of
   interest and/or a change in
   accounting principles? Y    (Y/N)  Periods Restated on this report: 12/31/00
 
   Reason: Acquisition of Community Independent Bank on January 3, 2001,
   accounted for as a pooling of interests
 
     FORM PREPARED BY:    Sandra Massaro      PHONE:    610-369-6340
 
 

SOURCE National Penn Bancshares, Inc.
    BOYERTOWN, Pa., April 17 /PRNewswire/ --
 National Penn Bancshares, Inc., (Nasdaq: NPBC) the parent company of National
 Penn Bank and Panasia Bank, N.A., reported an 8.7% increase in net income of
 $7,572,000 for the first three months of 2001 when compared to $6,964,000 for
 the three months ended March 31, 2000.  Net income per diluted share for the
 first three months of 2001 was $0.39, an 8.3% increase over the $0.36 reported
 for the first three months of 2000.  These earnings represent a return on
 average realized equity of 16.9% and a return on average assets of 1.17%.
 These compare to a return on average equity of 16.6% and a return on average
 assets of 1.17% for the first quarter of 2000.
     The company had total assets at March 31, 2001 of $2.63 billion and total
 deposits of $1.92 billion.  The company's loan loss reserve as of March 31,
 2001 was $38.9 million which represents 2.14% of total loans outstanding of
 $1.82 billion.
     During the first quarter of 2001, National Penn Bancshares, Inc. completed
 the acquisition of Community Independent Bank, Inc., parent company of
 Bernville Bank, N.A., in a transaction accounted for under the pooling of
 interests method of accounting.  As a result, all financial information
 presented for current and prior periods has been restated to include the
 results of Community Independent Bank, Inc. and its subsidiary.
     On March 28, 2001, the Board of Directors declared a quarterly cash
 dividend of  $0.21 per share, payable May 17, 2001 to shareholders of record
 on April 30, 2001.  National Penn Bancshares, Inc. and its predecessor bank
 have paid cash dividends without interruption for over 125 years.
 
     National Penn Bancshares, Inc. currently operates 60 banking offices in
 southeastern Pennsylvania through National Penn Bank and its divisions,
 Chestnut Hill National Bank, 1st Main Line Bank, National Asian Bank, and
 Elverson National Bank.  Panasia Bank operates 3 banking offices in the
 northern New Jersey marketplace.  Trust and investment management services are
 provided through Investors Trust Company, brokerage services are provided
 through Penn Securities, Inc., and mortgage banking activities are provided
 through Penn 1st Financial Services, Inc.
 
 
                         National Penn Bancshares, Inc.
 
                 (Dollars in thousands, except per share data)
 
     Three Months Ended March 31,                    2001            2000
 
     STATEMENTS OF CONDITION
     Total assets                                  $2,632,768     $2,384,512
     Total deposits                                 1,919,642      1,709,136
     Total loans                                    1,819,632      1,667,725
     Total shareholders' equity                       193,452        154,938
     Total realized shareholders' equity*             184,079        169,044
     Book value per share                                9.98           8.06
     Realized book value per share*                      9.50           8.80
 
     EARNINGS
     Total interest income                            $49,012        $45,827
     Total interest expense                            26,807         23,512
     Net Interest Income                              $22,205        $22,315
     Provision for loan losses                          1,500          1,530
     Net interest income after provision
      for loan losses                                 $20,705        $20,785
     Other income                                       7,573          6,282
     Other expenses                                    18,704         18,430
     Income before income taxes                        $9,574         $8,637
     Income taxes                                       2,002          1,673
     Net income                                        $7,572         $6,964
     Return on average assets                           1.17%          1.17%
     Return on average shareholders' equity             16.5%          17.8%
     Return on average realized shareholders'
      equity*                                           16.9%          16.6%
     Average shares -- basic                       19,374,224     19,232,444
     Average shares -- diluted                     19,624,151     19,462,539
 
     PER SHARE
     Basic earnings                                     $0.39          $0.36
     Diluted earnings                                    0.39           0.36
     Dividends paid in cash                              0.21           0.19
 
     *Excluding net unrealized gain (loss) on securities available for sale
 
                                                     AS OF           AS OF
     BALANCE SHEET - ASSETS ($000s)                 3/31/01        12/31/00
         Cash & Cash Equivalents                   $ 93,888       $ 104,631
         Trading Account Securities                       -               -
         Securities Available for Sale              612,636         606,778
         Held to Maturity Securities                      -               -
         Other Securities                                 -               -
         Total Securities                           612,636         606,778
         Total Cash and Securities                  706,524         711,409
         Loans & Leases Held for Investment*      1,819,632       1,787,314
         Loans & Leases Held for Sale*                    -           9,671
         Total Loans and Leases*                  1,819,632       1,796,985
         *Indicates data net of discount,
           gross of reserve
         Loan Loss Reserve                          (38,985)        (37,098)
         Goodwill                                    16,702          17,028
         Other Intangibles                                -               -
         Total Intangible Assets                     16,702          17,028
         Mortgage Servicing Rights                        -               -
         Purchased Credit Card Relationships              -               -
         Real Estate Owned & Held for Investment        926             988
         Other Assets                               127,969         126,135
         Total Assets                           $ 2,632,768     $ 2,615,447
 
     BALANCE SHEET - LIABILITIES ($000S)
         Deposits                               $ 1,919,642     $ 1,909,591
         Borrowings                                 449,751         453,522
         Trust Preferred Securities                  40,250          40,250
         Other Liabilities                           29,737          28,868
         Total Liabilities                      $ 2,439,380     $ 2,432,231
 
     BALANCE SHEET - EQUITY ($000s)
         Redeemable Preferred Stock                     $ -             $ -
         Preferred Equity                               $ -             $ -
         Common Equity                            $ 193,452       $ 183,216
 
     MEMO ITEMS
         Accumulated other comprehensive income     $ 9,373         $ 2,753
         Publicly Reported Book Value Per Share (A)  $ 9.98          $ 9.47
         Book value per share excluding
          accumulated other comprehensive inc. (A)   $ 9.50          $ 9.33
         EOP Common Shares Outstanding
          (excluding Treasury shares)(A)         19,380,241      19,349,942
         Treasury Shares Held By Company              9,538          39,837
         Did you announce a repurchase plan
          during this period?                           Yes              NO
         Number of Shares to be Repurchased
          in Plan (A)                                55,000               -
         Number of Shares Repurchased During
          Period (A)                                 16,319               -
         Average Price of Repurchased Shares (A)      23.28               -
 
     (A) restated for 5% stock dividend paid December 20, 2000.
 
 
                                                    FOR QUARTER      YEAR
                                                       ENDED         ENDED
     INCOME STATEMENT ($000s)                         3/31/01       12/31/00
 
         Interest Income                             $ 49,012      $ 192,303
         Interest Expense                              26,807        103,976
         Net Interest Income                           22,205         88,327
         FTE adjustment                                 1,860          7,234
         Net Interest Income (FTE)                     24,065         95,561
         Loan Loss Provision                            1,500          7,325
         Investment Securities Trans.                      31            286
         Nonrecurring Income                                -              -
         Nonrecurring Expense                               -              -
         Trading Account Income                             -              -
         Foreign Exchange Income                            -              -
         Trust Revenue                                  1,268          4,855
         Service Charges on Deposits                    2,040          7,175
         Mortgage Banking Income                          776          2,203
         Fee Income from Investment Product Sales         490          2,007
         Other Noninterest Income                       2,968         11,132
         Total Noninterest Income(excludes
          securities gains/losses)                      7,542         27,372
         Employee Comp. & Benefit Expense              10,546         41,589
         Occupancy & Equipment Expense                  3,108         12,190
         Foreclosed Property Expense                        -              -
         Amortization of Intangibles                      325          1,000
          (Excludes Servicing and Credit Card
          Intangibles)
         Other Noninterest Expense                      4,725         20,504
         Total Noninterest Exp.                        18,704         75,283
         Minority Interest Expense                          -              -
         Net Income Before Taxes                        9,574         33,377
         Tax Provision                                  2,002          5,690
         Net Inc. Before Extraordinary Items            7,572         27,687
         Extraordinary & After-Tax Items                    -              -
         Net Income                                   $ 7,572       $ 27,687
 
         EARNINGS PER SHARE:
 
         Basic before extraordinary (A)                $ 0.39         $ 1.44
         Diluted before extraordinary (A)              $ 0.39         $ 1.43
         Basic after extraordinary (A)                 $ 0.39         $ 1.44
         Diluted after extraordinary (A)               $ 0.39         $ 1.43
         Dividends per Common Share (A)                $ 0.21         $ 0.76
         Average Shares Basic (A)                  19,374,224     19,240,915
         Average Shares Diluted (A)                19,624,151     19,448,811
         Dividends on Preferred Stock ($000s)             $ -            $ -
 
      (A) restated for 5% stock dividend paid December 20, 2000.
 
 
     AVERAGE BALANCE SHEET ($OOOs)
                                                     As of       For QTR Ended
                                                   03/31/01         3/31/01
                                                   (YTD AVG)       QTRLY AVG
 
         Total Loans (net of unearned)              1,789,337      1,789,337
         Loan Loss Reserve                           (38,743)       (38,743)
         Investment Securities (incl.
          trading assets)                             614,861        614,861
         Other Earning Assets                          18,527         18,527
 
         Total Earning Assets (net of loan
          loss reserve)                             2,383,982      2,383,982
         Total Assets                               2,582,327      2,582,327
 
         Savings                                      106,386        106,386
         NOW Accounts                                 197,209        197,209
         Money Market Accounts                        367,269        367,269
         Certificates                                 945,797        945,797
 
         Total Int. Bearing Deposits                1,616,661      1,616,661
 
         Non-Interest Bearing Deposits                286,565        286,565
         Total Deposits                             1,903,226      1,903,226
 
         Short-Term Borrowings                        278,552        278,552
         Long-Term Borrowings                         186,681        186,681
         Total Int. Bearing Liabilities
          (incl. non-int bearing deposits)          2,368,459      2,368,459
         Total Int. Bearing Liabilities             2,081,894      2,081,894
         Total Shareholder's Equity                   183,878        183,878
 
 
                                  FOR QUARTER       FOR YEAR         YEAR
                                     ENDED           TO DATE         ENDED
     CHARGEOFFS ($000s)              3/31/01           2001        12/31/00
 
         Loan Chargeoffs             $ 2,053         $ 2,053       $ 7,109
         Recoveries on Loans           $ 504           $ 504       $ 2,082
         Net Loan Chargeoffs         $ 1,549         $ 1,549       $ 5,027
 
                                                      AS OF           AS OF
     ASSET QUALITY AND OTHER DATA ($000s)            3/31/01        12/31/00
 
         Nonaccrual Loans                            $ 21,708       $ 12,984
         Renegotiated Loans                                 -              -
         Other Real Estate Owned                          926          1,485
         Total Nonperforming Assets                    22,634         14,469
         Loans 90+ Days Past Due & Still Accruing       1,359          4,559
         NPAs plus Loans over 90                     $ 23,993       $ 19,028
 
                                                        AS OF          AS OF
     REGULATORY CAPITAL DATA ($000s)                  3/31/01       12/31/00
 
         Tier 1 Capital                             $ 207,562      $ 203,197
         Tier 1 Ratio (%)                              10.55%         10.49%
         Total Capital (Tier 1 + Tier 2)            $ 233,378      $ 227,589
         Total Capital Ratio (%)                       11.86%         11.75%
         Total Risk-Adjusted Assets               $ 1,968,042    $ 1,936,314
         Tier 1 Leverage Ratio                          8.11%          7.96%
 
                                                                 AS OF
     SUPPLEMENTAL DATA ($000s)                                  3/31/01
 
         1-4 Family Mortgage Loans
          Serviced For Others                                 $ 233,540
         Propriety Mutual Fund Balances                             $ -
         (Net Asset Value in $000s)
         Held to Maturity Securities (Fair Value)                   $ -
         Return on Avg. Assets                                    1.17%
         Return on Avg. Equity                                    16.5%
         Preferred Stock Dividends (total $ in period)              $ -
         Common Stock Dividends (total $ in period)             $ 4,072
         One Year Cumulative Repricing Gap                          $ -
         EOP Employees (Full Time Equivalent)                       812
 
 
                                                                  AS OF
     PERIOD END BALANCES:                                        3/31/01
 
     Loan Breakdown: (regulatory)
         Commercial/Industrial                                $ 309,496
         Commercial Real Estate                                 587,284
         Residential Mortgage (including multi-family)          518,253
         Real Estate Construction (and Land Development)        155,614
         Home Equity (revolving and 2nd lien)                   148,412
         Consumer (Loans to Individuals)                         84,241
         Bank Card                                                    -
         Foreign                                                      -
                                             (Other)             16,332
         Total Loans (net of unearned)                        1,819,632
         Investment Securities (incl. trading assets)           612,636
         Other Earning Asset                                     30,180
         Total Earning Assets (net of loan loss reserve)      2,423,462
         Total Assets                                         2,632,768
     Deposit Breakdown:
         Savings                                                108,956
         NOW Accounts                                           212,570
         Money Market Accounts                                  380,164
         Certificates                                           689,701
         CDs>$100m                                              265,275
         Foreign CDs                                                  -
                                            (as needed)               -
     Total Int. Bearing Deposits                              1,656,666
         Non-Interest Bearing Deposits                          262,976
     Total Deposits                                           1,919,642
         Short-Term Borrowings                                  303,324
         Long-Term Debt                                         186,677
     Total Int. Bearing Liabilities (incl. non-int
      bearing deposits)                                       2,409,643
     Total Int. Bearing Liabilities                           2,146,667
     Total Stockholders Equity                                $ 193,388
 
 
                                                                 AS OF
     PERIOD END BALANCES:                                       3/31/01
 
     Loan Breakdown: (internal)
         Business Purpose Loans                               $ 589,068
         Residential Mortgage                                   202,550
         Commercial Real Estate, Construction and Land Dev      692,480
         Consumer (loans to Individual)                         335,534
         Total Loans (net of unearned)                      $ 1,819,632
 
 
     BALANCE AND YIELD/COST ANALYSIS:                          AS OF
     (Qtr Avg)                                                3/31/01
                                                  Avg Balance          Yield
 
     Total Loans (net of unearned)                $ 1,789,337           9.0%
     Investment Securities (incl. trading assets)     614,861           7.2%
     Other Earning Assets                              18,527           5.7%
 
     Total Earning Assets                           2,422,725           8.5%
     Total Earning Assets (net of loan
      loss reserve)                                 2,383,982           8.7%
     Total Assets                                   2,582,327           8.0%
 
     Savings                                          106,386           2.1%
     NOWAccounts                                      197,209           1.1%
     Money Market Accounts                            367,269           4.7%
     Certificates                                     945,797           6.4%
 
     Total Int. Bearing Deposits                    1,616,661           5.1%
 
     Non-Interest Bearing Deposits                    286,565
     Total Deposits                                 1,903,226           4.3%
 
     Short-Term Borrowings                            278,552           5.1%
     Long-Term Borrowings                             186,681           6.8%
     Total Int. Bearing Liabilities
     (incl. non-int bearing deposits)               2,368,459           4.6%
     Total Int. Bearing Liabilities                 2,081,894           5.2%
     Total Shareholder's Equity                     $ 183,878
 
     Net Yield on Earning Assets (net of loan
      loss reserve): (Margin)                            4.1%
     Net Yield on Earning Assets: (Margin)               4.0%
 
 
    STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA)
 
            State     Number of Full Service Banking Offices (Domestic and in
                             the U.S. Territories)
 
             1.  PA                                                        6
     Total Number of Banking Offices                                      61
     Total Number of Insured Subsidiaries (Bank & Thrift
      Subsidiaries)                                                        1
     Total Number of ATMs                                                 74
 
             2.  NJ                                                        3
     Total Number of Banking Offices                                       3
     Total Number of Insured Subsidiaries (Bank & Thrift
      Subsidiaries)                                                        1
     Total Number of ATMs                                                  4
 
   Have you restated any prior period's financial statements for a pooling of
   interest and/or a change in
   accounting principles? Y    (Y/N)  Periods Restated on this report: 12/31/00
 
   Reason: Acquisition of Community Independent Bank on January 3, 2001,
   accounted for as a pooling of interests
 
     FORM PREPARED BY:    Sandra Massaro      PHONE:    610-369-6340
 
 SOURCE  National Penn Bancshares, Inc.